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How to Calculate Credit Card Minimum Payment

Show the true long-term cost of making only minimum payments on credit card debt.

The Formula

minPayment = max(balance * 0.02, 25)

The credit card minimum payment formula uses the mathematical relationship: minPayment = max(balance * 0.02, 25). Each variable in the formula represents a measurable quantity that affects the final result.

Step-by-Step Method

  1. 1Identify all input values needed for the credit card minimum payment calculation.
  2. 2Substitute your known values into the formula: minPayment = max(balance * 0.02, 25).
  3. 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
  4. 4Check that your result has the correct units and is within a reasonable range.
  5. 5Verify using the interactive Credit Card Minimum Payment Calculator to confirm your answer.

Related Topics

credit cardminimum paymentdebtinterest

Use the Interactive Calculator

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